In the first 10 minutes of a meeting, your client says:

“Do you remember my granddaughter Emma? She bought her own place! She’s closing next week.”

At that moment

  • Ask where your client’s granddaughter bought, and find out if Emma plans to live alone or if she will share her home. If other people will live with her, are they her co-owners or her tenants?

Later in the meeting

  • Emma should have legal agreements in place with all people living in her home. This applies to co-owners and tenants, including roommates. Offer to refer her to a lawyer you trust.
  • If she wants to rent out her home for short periods, suggest she find out how that activity would affect her insurance and, if she bought a condo unit, what is permitted in her building.
  • Her rights and obligations as a homeowner vary by location. Offer to prepare a list for her.
  • Ask if Emma received any financial help with the purchase, including from your client. If he already contributed, or wishes to now, run the numbers for the possible scenarios.

At your next meeting

  • Find out how Emma’s move went.
  • Ask about Emma’s plans for the property. If she plans to flip it, her gain could be taxed as income, so recommend that she get tax advice.

On the web

Is your client considering home ownership? Help her perform her due dilligence with the homebuying guide, workbook and checklists

Should a client buy a condo with friends?

by Gil Martinez, art director of Advisor Group